Iowa Department of Education

Collecting money owed from students for school lunch or unpaid fees or fines can be a frustrating experience. Both school districts and nonpublic schools need to be aware that certain debt collection practices are prohibited by law. A school or school district is prohibited by Iowa Code chapter 537 (the Consumer Credit Code) from doing any of the following:

1. Posting a list of names of students who owe money - even if the amount is not listed.

2. Communicate to anyone except the student and student's family that money is owed. This does not prohibit a school from hiring an attorney or agent to collect the debt. Nor does it prohibit a school, once judgment is obtain, from legally collecting on the judgment by garnishing wages or seizing bank accounts of the debtor.

3. Send a note home with a student if anything on the outside of the envelope indicates that the letter is about money owed to the school.

4. Withhold grade reports or diplomas until money is paid in full, or prohibit a student from participating in commencement exercises.

Although the question arose in the context of school lunch, the above information applies to any debt owed to a school or school district. Protect yourselves and know what chapter 537 does and does not allow. There are large fines associated with violating chapter 537. The one legal option is to sue the responsible party (usually a parent or guardian) in small claims court.